Independent agents have specific stakes in several high-profile issues being debated in Congress, including healthcare reform, renewal and reform of the National Flood Insurance Program (NFIP), and passage of a new Farm Bill in 2018.
|Health care
The most contentious and unpredictable issue facing Congress is health care. The effort to repeal and replace the Affordable Care Act (ACA) has hit many bumps in the road. Ultimately, the ACA's fate will be determined by the political process, with public opinion the most important driver. PIA will work to ensure that agent and broker commissions are excluded from the calculation of medical loss ratio and that the "Cadillac Tax" (the 40% excise tax on "overly generous" employer-sponsored health plans set to take effect in 2020) is delayed, if not ultimately repealed.
Related: Significant changes may be ahead for P&C insurance with Republican president and Congress
|Flood insurance
Congress is crafting legislation to reform and reauthorize the National Flood Insurance Program, which is set to expire on Sept. 30. PIA is a stalwart supporter of reauthorization, as well as many of the reforms in draft legislation, including improving the claims process and taking steps to encourage the private market to sell policies.
But in the House, legislation passed out of committee included a 3% cut to the Write-Your-Own (WYO) reimbursement rate, which is used by carriers to pay administrative expenses as well as agent commissions, among other costs. WYO carriers have made it clear that they intend to pass any cuts to their reimbursement rate to agents via their commissions. As a result, PIA is compelled to oppose legislation we would otherwise support because, as an agents' associatio, we cannot back a bill that would cut agent commissions.
|Crop insurance
One of the most important risk management tools available to U.S. farmers is crop insurance, backed by the Federal Crop Insurance Program (FCIP), and sold and serviced by independent crop insurance agents.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
